The law firms of Hill|Turner LLC and the McFerrin Law Firm announce that the Alabama Legislature today failed to pass House Bill 811 – the Jefferson County occupational tax bill.  The original occupational tax was ruled invalid by Judge David Rains on January 12, 2009.  Judge Rains’ Order requires the Jefferson County Commission to deposit any money collected under the old occupational tax into an escrow account while the case is being appealed.  Judge Rains had stayed operation of his Order to give the Alabama Legislature the opportunity to pass a new occupational tax bill.  With no action taken today by the Legislature, the fate of the occupational tax returns to the Courts. 

“The Legislature returned to the debate that lead to the original repeal – who should pay this tax?” stated Sam Hill, counsel for the class of tax payers in the case before Judge Rains.  “When all is said and done, there has been no progress on this issue since 1999,” said Hill.

Jim McFerrin, who also represents the class of tax payers, adds, “So many versions of this bill were bandied about both houses of the Legislature this session that it was dizzying.  There were earmarks added and removed, language about professionals, attempts to kill our lawsuit – it was a different bill every time you looked at it.  In the end, the Legislature reached an impasse that could not be broached.”

“Judge Rains made clear that his Order staying the escrow ends with the legislative session.  If the County wants to have access to any collected funds during the rest of this appeal process, they need to come to the table in good faith and we’ll see if there is a compromise that protects our class members that we can agree to,” added Hill.

The case is on appeal to the Alabama Supreme Court.